TUNISIA:
SFAX EXPLORATION PERMIT

Tunisia is located on the Mediterranean Sea in North Africa and has a flourishing oil and natural gas industry.

In April 2008 Eurogas and its operating partner Atlas Petroleum Exploration Worldwide (APEX) reached a farmout agreement with Delta Hydrocarbons B.V. of Schipol, the Netherlands, covering the 1-million-acre Sfax Exploration Permit. Regulatory approval was received and a two-well drilling contract was awarded that included an option for two additional wells. The drilling program is expected to begin with two wells at Ras El Besh in June 2008. Eurogas will hold a 22.5% working interest in the Sfax permit once Delta Hydrocarbons fulfills its farmout commitments.

Since the award of the permit in 2005, Eurogas and its operating partner have acquired more than 900 square kilometres of 3D seismic data over three areas. The new seismic includes a 348-square-kilometre program over the Ras El Besh and Jawhara development prospects, a 520-square-kilometre program over exploration leads, and a 45-square-kilometre program over the Salloum prospect just off the Tunisian coastline. Eurogas' operating strategy is two-fold: drill and evaluate the three structures that had previously tested oil under past operators, and evaluate the wider exploration acreage within the permit.